North Dakota AI and Data Center Committee hears predictions for energy use increases
A North Dakota legislative committee held its first meeting to discuss the projected doubling or tripling of electricity use by AI data centers by 2030. Lawmakers raised concerns about the existing electrical grid's capacity and speed of expansion. Discussions included the potential for state-level regulations to manage costs and infrastructure development.
The North Dakota Legislature's Artificial Intelligence and Data Center Committee convened its inaugural public meeting, addressing the anticipated surge in electricity consumption by AI data centers across the U.S. Tony Clark, executive director of the National Association of Regulatory Utility Commissioners and a volunteer committee member, presented data predicting that AI data centers' share of total U.S. electricity use could escalate from 4-5% in 2024 to 9-17% by 2030.
State legislators, including Rep. Mike Nathe and Sen. Dean Rummel, expressed skepticism about the national electrical grid's ability to accommodate such rapid growth and questioned whether data centers could develop independent infrastructure. Clark noted that while self-sufficiency is possible, utilizing the existing grid is generally considered more optimal for both data center companies and economists overseeing the grid.
Clark highlighted that North Dakota is projected to be among the top third of states in terms of electricity usage increases, despite currently ranking among the most affordable for electricity prices. He suggested that while spreading fixed costs over a larger customer base can sometimes reduce prices, costs could rise if demand outstrips infrastructure capacity. Clark advised the Legislature to consider regulations to ensure residents are not disproportionately burdened by the costs of new electrical load. Other presentations at the meeting covered AI regulation efforts in other states and at the federal level, focusing on issues such as whistleblower protections and rights to review AI-driven decisions. An image caption accompanying the article shows an Applied Digital data center in Harwood, North Dakota, indicating ongoing construction.